Inflation in the eurozone slows to 5.3%, the lowest level since January 2022 – Trading Economics

Among the reasons cited are falling energy prices, slowing growth of food, alcohol, and tobacco prices, and non-energy industrial goods

Annual inflation in the eurozone slowed for the third consecutive month to 5.3% in July 2023 from 5.5% in June, as shown by preliminary estimates, according to market forecasts. 

This is reported by Trading Economics.

This is the lowest level since January 2022 due to a further drop in energy prices (-6.1% against -5.6%) and a slowdown in the growth of food, alcohol, and tobacco prices (10.8% against 11.6%), as well as non-energy industrial goods (5% versus 5.5%).

On the other hand, inflation in the services sector continued to rise to 5.6% from 5.4%. At the same time, core inflation, which does not include energy prices, food, alcohol, and tobacco, remained unchanged at 5.5% compared to a forecast of 5.4% and exceeded the headline figure for the first time since 2021.

Compared to June, the CPI in the eurozone fell by 0.1%. The ECB targets inflation at 2%.

Background. Mind earlier reported that the ECB had raised interest rates by 25 basis points, which became the ninth consecutive rate increase.

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